FX News - May 21

The USD/JPY has so far continued the momentum it had last week and is currently trading at around the 102.50 level. Earlier, analysts said that they expect the pair to reach 105 by the end of the year. But at the pace it is going at the moment, that level may be reached sooner than later.

Majority of businessmen, however, prefer to see the yen at 100 against the USD. This was according to the Reuters Corporate Survey published yesterday. This is still higher than what most analysts see as the fair market value of the yen, which according to them is actually at 95.

Initial resistance for the USD/JPY is seen at 102.61, followed by 102.87. On the other hand, initial support is at 101.67, followed by 101.42.

EUR/USD

The EUR/USD pair rose to a little over 1.290 in anticipation of Germany's Producers' Price Index (PPI) data. Released at 6AM GMT today, both the YoY and MoM figures rose less than expected. From a projected slide from 0.4% to 0.2%, the YoY data was at 0.1%, while the MoM data was at -0.2%, lower than the -0.1% consensus.

The story does not end for the pair this week as several news from the US are expected to affect the pair and help it set a more established trend. Later this week, the Fed will release the FOMC minutes and Fed Chairman Bernanke will give his testimony to the Congress.

Initial resistance for the EUR/USD is seen at 1.2934, followed by 1.2967. On the other hand, initial support is seen at 1.2851, followed by 1.818.

AUD/USD

Earlier today, the Reserve Bank of Australia released the minutes of its monetary policy meetings this May. There were no new or shocking news in the release, so it is not expected to create any significant effect on the AUD/USD pair, which slid significantly this month from 1.030 to just 0.980 at the moment.

Initial resistance for the AUD/USD is seen at 0.9866, followed by 0.9890, while initial support is at 0.9772, followed by 0.9748.

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